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2004 Supreme(Del) 136

High Court Of Delhi
INDUSTRIAL MEDICAL ENGINEERS - Appellant
Versus
ANIL NIJHAWAN - Respondent
C.R.P 367 of 2001
Decided On : 02/25/2004

Advocates Appeared:
PUNIT BHALLA, RAMAN KAPOOR

The benefit of doubt should be given to the party sought to be served, and the court should balance the need to afford sufficient opportunity to the affected party to be heard with the necessity to prevent dilatory tactics in a summary suit.

Headnote:

Service of Summons - Order XXXVII of CPC - The court balanced the need to afford sufficient opportunity to the affected party to be heard with the necessity to prevent dilatory tactics in a summary suit. The court held that the benefit of doubt should be given to the party sought to be served, and in this case, the firm was deemed to have been served based on the report of the process server and the returned AD card.

Fact of the Case:

The plaintiff filed a suit for the recovery of money under Order XXXVII of the CPC. Defendant Nos. 1 to 3 did not enter appearance, and a Decree was passed against them. The plaintiff conceded that one of the defendants was not a partner in the firm and prayed for the defendant to be struck off from the proceedings.

Finding of the Court:

The court found that the firm was actually served based on the report of the process server and the returned AD card. The court held that no error in the exercise of jurisdiction was evident from the records and dismissed the CRP.

Issues: Service of summons under Order XXXVII of the CPC, validity of service, and the necessity to balance the rights of the affected party with preventing dilatory tactics in a summary suit.

Ratio Decidendi: The court balanced the need to afford sufficient opportunity to the affected party to be heard with the necessity to prevent dilatory tactics in a summary suit. The court held that the benefit of doubt should be given to the party sought to be served, and in this case, the firm was deemed to have been served based on the report of the process server and the returned AD card.

Final Decision: The court dismissed the CRP and ordered the amounts deposited in the court to be released to the Decree Holder/respondent. Trial court records were to be returned.

( 1 ) IN the present case the Plaintiff has filed a Suit for the recovery of money under Order XXXVII of the CPC. On 16. 10. 2000 the learned Trial court had arrived at the conclusion that the Petitioners, namely, M/s. Industrial medical Engineers, Shri S. P. Bhargava and Shri Vikas Bhargava had been duly served. It was observed that Defendant Nos. 1 and 2 had been served by means of registered Post Acknowledgement Due on 22. 9. 2000, while the notices issued to defendant No. 3 had been returned back with the Report of the Postal Authorities that it had been "refused". Defendant Nos. 4 and 5 have been deleted from the array of the parties. However, since Defendant Nos. 1 to 3 had not entered appearance , a Decree was passed against these persons. At the time of hearing, learned Counsel for the Respondent/plaintiff had conceded that since Shri Vikas Bhargava was/is not a partner in the firm, the Decree against this person would not be proper. He, therefore, has prayed that Shri Vikas Bhargava be struck off from the array of parties in these proceedings, and be deemed to have been struck off from the array of parties in the Suit also.

( 2 ) IT appears that so far as the partnership firm, M/s. Industrial Medical engineers, is concerned, (Defendant No. 1 in the Suit), the Report of the Process server on his attempt to serve summons under Order XXXVII is to the effect that since the proprietor/partner was not available, service could not be effected. However, as far as the service by Registered Post Acknowledgement Due is concerned the AD Card has been returned with an initial/signature purporting to be on behalf of the firm. The Process Server has reported that Shri S. P. Bhargava was not available; but by the mode of service by Registered AD, the Report is that it had been refused .

( 3 ) IT cannot be gainsaid that the Court should be cautious and slow to proceed to adjudicate upon a lis in the absence of a party thereto. A decision taken without affording sufficient opportunity to the affected parry of being heard or entering his defence, is anathema to law. It is equally essential that a devious Defendant who is deliberately evading service should not be permitted to delay justice by adopting dilatory designs; this factor is of added significance when a summary suit is being tried. Both these considerations have to be neatly and carefully balanced against each other. If there is scope for doubt, the benefit should be given to the party sought to be served.

( 4 ) THE Postman is an independent agency whose Report should ordinarily be accepted. No cogent reason has been disclosed before me to doubt that the initial/ signature on the AD Card was of a person having the control or management of the partnership business, since admittedly the service was directed to the principal place at which the partnership is carried on. It should not be forgotten that the postman in the area normally has full knowledge of the identity of the addressees. The Process Server s Report in this context is indicative of the firm adopting evasive tactics; knowledge of the suit must be imputed to it. Keeping both modes of service in perspective, no doubt remains that the firm was actually served and had knowledge of the pendency of the suit.

( 5 ) NO error in the exercise of jurisdiction has been disclosed or is evident from the records.

( 6 )

( 7 ) THE amounts deposited in this Court be released to the Decree Holder/ respondent. Trial Court Records be returned. CRP dismissed.

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